What is Gear Extraction?

This is also done in the Repair Bench which allows players to use Secondary Resources from logging, mining, and plant gathering and convert them to EP (Energization Points). EP is used for energizing gears. Extracted resources are permanently lost so be careful when choosing what to extract. The amount of EP extracted will depend on the resource’s rarity and effect.

So, do you really have to energize your gear before going out on an adventure?

Energizing is entirely optional and what we see where it can give you an edge is during major events like fighting infected bosses, going out to war against other players, etc. If you're a new player, you can just ignore this feature for a good while until you feel becoming competitive or tackling harder challenges, or even PVP. That said, you don’t need to extract your resources unless you’re heavily energizing your gear.